Forex News
April 12, 2013 @ 7:05 am

Yen hovers near 4-year lows

The yen hovered near four-year lows against the dollar, although there was some recovery of losses as USDJPY eased lower in profit taking in the Asian trade on Friday.

Risk sentiment remains high though as investor confidence underpinned by improved US economic data on the jobs front. Yesterday a report showed US initial jobless claims dropped.

USDJPY got so close to the key 100 yen level by hitting 99.93 in the late US session on Thursday, before slipping in early Friday Asian session trading.   

The dollar-yen has rallied 7 percent since the Bank of Japan pledged at its policy meeting last week to inject about $1.4 trillion into the Japanese economy to fight deflation and achieve its 2 percent inflation target.

Euro held onto gains, trading back above $1.31 but this euro-dollar rate does not reflect the reality.  The euro is not supported by the fundamentals, and remains vulnerable to problems in the euro zone, particularly in France, Italy and Spain.

The single currency is just being underpinned by the weaker dollar which was broadly weaker recently due to Federal Reserve quantitative easing and weak nonfarm payrolls data.

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